in

The Unrealistic Business Model

If you ever started a business you will learn about the 1 to 5. This means if this item cost you $1.00 to make, you have to sell it for $5.00.

You work it out like this…$1.00 for materials. $1.00 for labour. $1.00 for Utilities. $1.00 in case materials, labour or utilities increase, and $1.00 for your pocket.

This means that you would have extra money in one of these 5 categories just in case.

To build something for $1.00 and sell it for $2.00 is impractical. You can do it on a sale, after you sold most of your stock; so, for example, if you were selling these chairs at $25.00 (each costing you $5) and you had ordered 40 chairs, and already sold 30 chairs; when you put up the sign; “On Sale!  $15.00!” you don’t really lose.

In writing sites, where Adsense now pays a fraction of a cent for a view how could a site pay 1c per view? Or Like? Or comment?

Sure, if you can write about motorcycles and have Amazon ads around the article, okay… yeah.. someone might click on an ad because they are thinking of buying a motorcycle. But in most cases… who even glances at the silly ads?

So the money to pay those who write has to come from somewhere besides the ads.

The infamous Bubblews would take the money caught by views of 10,000 items, and pay 1,000 of those people the money earned from all 10,000. It is like all of us working at an office, and at the end of the week you get your salary and none of us get ours.

In ancient days, when Ads were better and paid more, a site like Triond could pay you 1c for every 6 views because they made 1c for every 3. As the site was very popular and busy and got a lot of attention a million hits a month was no biggie.

In more modern times, when Ads stink and pay less a site like Bubblews could pay you 1c because it was making up that 1c from other people’s earnings.

The reason I emphasise this, is because too many people don’t appreciate they profit from another’s loss.

Report

What do you think?

Legend

Written by jaylar

Story MakerYears Of MembershipContent Author

Leave a Reply